The Big Bailout of the Eurozone (Another crisis coming? - Seriously)

[seafoid]

http://www.rte.ie/news/business/2016/0310/773861-ecb-rates-meeting/

The European Central Bank has cut its main interest rate from 0.05% to 0% - the first cut since September 2014.

The bank has also cut its deposit rate deeper into negative territory, cutting to to -0.4% from -0.3%.

The ECB also said that it would increase its bond buying programme from €60 billion a month to €80 billion a month .

It is a waste of time. They should give everyone in the EZ a cheque if they want to generate inflation

[muppet]

http://www.rte.ie/news/business/2016/0310/773861-ecb-rates-meeting/

The European Central Bank has cut its main interest rate from 0.05% to 0% - the first cut since September 2014.

The bank has also cut its deposit rate deeper into negative territory, cutting to to -0.4% from -0.3%.

The ECB also said that it would increase its bond buying programme from €60 billion a month to €80 billion a month .

It is a waste of time. They should give everyone in the EZ a cheque if they want to generate inflation

That is what they should have done with the various bailouts. The money would have gone to the banks anyway and the debt would have been reduced. Instead all 'assistance' was merely more debt in a system already crippled by debt.

[armaghniac]

http://www.rte.ie/news/business/2016/0310/773861-ecb-rates-meeting/

The European Central Bank has cut its main interest rate from 0.05% to 0% - the first cut since September 2014.

The bank has also cut its deposit rate deeper into negative territory, cutting to to -0.4% from -0.3%.

The ECB also said that it would increase its bond buying programme from €60 billion a month to €80 billion a month .

It is a waste of time. They should give everyone in the EZ a cheque if they want to generate inflation

That is what they should have done with the various bailouts. The money would have gone to the banks anyway and the debt would have been reduced. Instead all 'assistance' was merely more debt in a system already crippled by debt.

My idea, which I would have provided for no fee, was to give everyone a €1000 voucher for the hols. Even left to their own devices the citizens would largely have spent these in Greece,  Cyprus, Portugal etc which is where it was needed.

However, Angela Merkel has a plan to give money to lots of Syrians to spend. 

[seafoid]

http://www.rte.ie/news/business/2016/0310/773861-ecb-rates-meeting/

The European Central Bank has cut its main interest rate from 0.05% to 0% - the first cut since September 2014.

The bank has also cut its deposit rate deeper into negative territory, cutting to to -0.4% from -0.3%.

The ECB also said that it would increase its bond buying programme from €60 billion a month to €80 billion a month .

It is a waste of time. They should give everyone in the EZ a cheque if they want to generate inflation

That is what they should have done with the various bailouts. The money would have gone to the banks anyway and the debt would have been reduced. Instead all 'assistance' was merely more debt in a system already crippled by debt.

This guy was saying the same thing in 2009. We could have had a safe banking system for a fraction of the money spent on QE. And the EZ still does not have bank resolution mechanisms

https://www.youtube.com/watch?v=zOZnRUZKf48

It is a financialised plutocracy and it is guaranteed to crash again

[armaghniac]

All the same the oul money is beginning to circulate in Ireland GDP growth 7.8% in 2015,or an annualised 10% in the last quarter.
http://www.rte.ie/news/business/2016/0310/773899-cso-economy/

[muppet]

Finished The Big Short - Michael Lewis

Subpime, Asset Backed Securities, Credit Default Swaps, Collateral Debt Obligations all explained for the lay-man.

All about the collapse of the financial system starting with its roots in subprime mortgages.

Starts off with a few wise people 'shorting' the subprime sector (using newly created Mortgage bond CDSs). Then more and more start shorting until the impending doom is so obvious even Goldman Sachs and the rest try dumping their long positions. AIG went bankrupt because they insured most of these CDSs up to 2006 but even they were trying to unravel their positions in late 2007.

Our inspired Government took the ultimate long position as late as september 2008. 

I know this isn't the movie thread and others have recommended this, but, the movie - The Big Short - is out and is very, very good. Really well done.

[seafoid]

from Zerohedge

the "market" is so manipulated now, it can't withstand even a modest 10% correction before global, coordinated central bank intervention is unleashed as has been the case over the past month

[muppet]

from Zerohedge

the "market" is so manipulated now, it can't withstand even a modest 10% correction before global, coordinated central bank intervention is unleashed as has been the case over the past month

Which means it isn't a real market. A bit like Irish property.

[seafoid]

from Zerohedge

the "market" is so manipulated now, it can't withstand even a modest 10% correction before global, coordinated central bank intervention is unleashed as has been the case over the past month

Which means it isn't a real market. A bit like Irish property.

which means a crash is guaranteed

[heganboy]

which means a crash is guaranteed

a crash is always guaranteed, the question is when...

[seafoid]

which means a crash is guaranteed

a crash is always guaranteed, the question is when...

No US bank collapsed during the Keynesian era. Neoliberalism is inherently unstable.  Any system that shunts money relentlessly to the top is.

[muppet]

which means a crash is guaranteed

a crash is always guaranteed, the question is when...

No US bank collapsed during the Keynesian era. Neoliberalism is inherently unstable.  Any system that shunts money relentlessly to the top is.

The problem is that having created the mess, they then turned to socialist solutions giving the people the worst of both worlds. The people who created the mess would have suffered appropriately had they not been bailed out. Instead the middle/working classes were called on to pay for everything.

They problem was more than Neo-Liberalism, it was also the reaction to crisis.

[seafoid]

which means a crash is guaranteed

a crash is always guaranteed, the question is when...

No US bank collapsed during the Keynesian era. Neoliberalism is inherently unstable.  Any system that shunts money relentlessly to the top is.

The problem is that having created the mess, they then turned to socialist solutions giving the people the worst of both worlds. The people who created the mess would have suffered appropriately had they not been bailed out. Instead the middle/working classes were called on to pay for everything.

They problem was more than Neo-Liberalism, it was also the reaction to crisis.

the crap is all over the system and there is no way to hedge counterparty risk. In a debt crisis the only thing to do is write the stuff down early and get it done with. The EZ also has a political dimension.  No government will admit its debt is riskier than Germany's. On top of all that neoliberalism is Incoherent. 
I bought shares 10 years ago . The price now is the same as it was in 2006.

[armaghniac]

Anyone fancy a century bond?
http://www.independent.ie/business/irish/ireland-sells-first-century-bond-at-rate-of-just-235pc-34585422.html

[seafoid]

http://www.zerohedge.com/news/2016-03-31/worst-case-scenario-73-down-here